Arun is Bringing You...Your Daily Remedy

Thursday, November 30, 2006

Money DOES Matter

I've been reading a lot of personal finance books recently since, now that I have a decent paying job, I figure some knowledge will help me better manage my assets. So yesterday, as I was sitting in Starbucks reading, I came to an epiphany (with the help of the book, Inside the Millionaire Mind).

Money Matters.

The author of the book, Harv Eker, brought up an interesting point which I will share from my own slant. People who say "money isn't important to me" are generally in a constant financial battle. Eker states that these people are broke which I disagree with. Ask any homeless person or begger on the street, and they will tell you how important money is to well being. These people are broke yet they understand the importance of money. Ask any tremendously wealthy person and they will also tell you how much influence money can buy in basically any affair. Go to the struggling middle class however and quite a few will say "I don't need money to be happy."

Au Contraire.

What they mean to say is "I don't need an obscene amount of money to be happy." Strip them of all their worth, left peniless, and I'm pretty sure each person would have a new appreciation for money. The problem is that we get stuck in this mundain "struggle" and become resentful of the one thing leaving us in this cycle, so we say that money isn't important. This perception is ironically what leaves us in the struggle. When things aren't important, we don't keep them around right? Subconciously, this devaluing of money is sabotaging our financial success.

Now I'm not saying that one cannot be happy without money. I'm just saying that money is one aspect among many, that contributes to general well being, and thus affects happiness.

"But Arun, I'm happy living the simple life!" Fine. I think I would be happy too. But I would be even happier living the simple life AND having a surplus of money that I could donate to building schools in Africa, or Cancer research or whatever. Money doesn't buy happiness, but happiness can sure be affected by its presence (or absence).

Warren Buffet is a great example of a great rich guy. He lives very modestly (I believe he lives in the same Nebraska home he purchased fifty years ago for $30,000), yet he recently donated some 31 BILLION dollars to Bill Gates Charity. Think about how many lives that 31 Billion is going to touch. I bet he feels great too!

That being said, I have decided to become obscenely wealthy. Sure, growing up I've always wanted to be rich but wanting to be something is much different than committing to be something. Rather than waiting for wealth to fall in my lap, I'm going to go get it. How you ask? Good Question. This is why I read books like "Rich Dad Poor Dad" and "Secrets of the Millionaire Mind." It's all about your "inner mind" (more on the power of the "inner mind" coming soon).

So this is the type of sfuff I think about while sitting at Starbucks. Last night it was realizing why money is actually important and thinking about the amount of things it brings us. No, it doesn't buy happiness, but it sure helps.

1 comment:

Timothy said...

A good point. I like to think of money like I like to think of most material things: You aquire things that increase your happiness, any other reason is silly. I like to have enough money to not worry about what I spend it on. I can pay rent and car payments, and enough to put some away for a rainy day. And when I want to go out to eat I do. I have enough money to make me happy, and so it's not "important to me" to make more. If I spent a lot of time worrying about money, it would be making me unhappy, and therefore be counterproductive. It's a balancing act, I guess, and the goal is to maximize happiness, in whatever way you need to do that.